ERC asked to junk Meralco’s power hike bid

Asenior administration congressman has asked the Energy Regulatory Commission (ERC) to junk the power hike bid of Meralco, which cited alleged oil price fluctuation and the Malampaya shutdown.

Bayan Muna Rep. Carlos Isagani Zarate said Meralco’s petition for power rate hike for February, March, April, and even May has no justification.

Meralco has claimed that oil price fluctuations and Malampaya’s shutdown has forced it to seek adjustment of its power rates.

“What specific provision in the power supply agreements (PSAs) of Meralco with the generation companies would justify ‘capacity fee adjustments’? Is this a yearly adjustment? Or it is just an unfortunate incident that always coincides with Malampaya’s shutdown?” Rep. Zarate asked.

“Since Meralco already applied with the Energy Regulatory Commission for staggered payments until the month of May, the supposed added costs due to the shift of using gas to condensate or liquid fuels, are we to expect even higher price hikes than the 10.30 per kilowatt per hour (kWh) given the supply condition on these billing months and the pricing trends at the Wholesale Electricity Spot Market (WESM)?” he asked.

He added: “Appallingly, while our poor people will be burdened once more with these price hikes, we are yet to be fully apprised on the results of the ERC investigation on the alleged collusion of generation companies and Meralco during the 2013 November-December Malampaya shutdown.

Zarate noted that there may be further spikes in the prices of electricity for the coming months, citing among other factors, the increase in the interim maximum allowable revenue (iMAR) of the National Grid Corporation of the Philippines (NGCP) from 141.653 billion to 143.789 billion that already resulted in a 10.15 per kWh increase in February billings and PSALM’s pending applications for universal charges on its stranded debts and stranded contract costs.

“There is really something fishy about these increases being floated recently,” he said.

This has prompted Zarate and other Makabayan lawmakers to file House Resolution (HR) 566.

In HR 566, progressive lawmakers said a congressional inquiry is vital in determining the alleged “midnight” Power Supply Agreements (PSA) entered into by Meralco with its mostly related companies.

The House was also asked to investigate if there are unwarranted cost recoveries bundled there.

“We cannot just take their data at face value considering what happened during the 2013 Malampaya shutdown,” said the Davao-based solon.

“As it is, Meralco should stop conditioning the minds of consumers for power rate hikes. We are calling on the people to protest and stop these unwarranted power rate hikes,” stated the Bayan Muna lawmaker.